Agri Business

Dakshina Kannada milk co-op plans to modify supply chain

A.J. Vinayak Mangalore | Updated on May 04, 2011 Published on May 04, 2011

Milk is an essential commodity that always commands demand from customers, and the milkman who delivers milk to your doorsteps is the vital link in its supply chain.

Labour shortage is now creating problems for this link of supply chain, leading to erratic supply of milk in some cases and overcharging in some others.

Considering these factors in mind, the Dakshina Kannada Cooperative Milk Producers' Union Ltd is now planning to change a part of its production and packaging process to long shelf-life milk packets.

To be built at a cost of Rs 20 crore, the construction of this unit would begin on May 8 and would be completed in two years.

With this plan, around 70,000 litres a day of production would be replaced with long shelf-life milk. The union, which meets the demands of milk in Dakshina Kannada and Udupi districts, has a daily demand of around 3.5 lakh litres of milk.

Manpower crunch

Mr Raviraja Hegde, President of Dakshina Kannada Cooperative Milk Producers' Union, told Business Line that whenever he met dealers on several occasions, manpower shortage in supply chain figured prominently in their discussions. There were also complaints from customers that some milkmen charge more than MRP (maximum retail price).

The normal milk having a shelf-life of day or two costs between Rs 22 and Rs 27 a litre. The existing long shelf-life brand can be stored for three months and is available at Rs 17 for 500 ml pack.

Considering the need for striking a balance between these two, the union is planning focus on producing milk packets having a shelf-life of one month. Asked about its pricing, he said these factors are yet to be worked out. “However, it will be below the existing long shelf-life brand,” he said.

“After experiencing labour shortage in this sector, I think the future of milk supply chain will depend on the availability of long shelf-life milk packets,” Mr Hegde said.

After the completion of the unit at Mangalore, the long shelf-life milk packets would be available at the nearby grocery shops. Once implemented, customers can buy their requirements for a week or 10 days together. This packet of milk can be stored in normal room temperature, he added.

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Published on May 04, 2011
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